Page 37 - AGM Pamphlet 2021

Review of Financial Results

The Audit Committee reviewed the unaudited 2020 Financial Statements for the Year ending
31 December 2020 (1). Based on this review and discussions with management, the Audit
Committee is satisfied that the Financial Statements were prepared in accordance with
applicable accounting standards and accurately presents the Security Institutes financial
position and results for the year ended 31 December 2020. The Audit Committee can only
express an opinion or ask questions based on the figures as presented, and not express an
opinion on accuracy.

The Audit Committee are recommending that the Financial Statements for the year ended 31
December 2020 be approved by the Board of Directors as a true reflection of accounts.

Comments
• Reduced expenditure in many areas for 2020 as a result of impact from Covid 19, in
particular reduced costs for the annual events, Annual Conference, Marketing and PR is
reduced.
• Member benefits have increased over the previous year by some £15,757 (up from £9,443
to £25,200).
• Debtors is at £73,541 which is an improvement from 2019.
• Accountancy expenditure is documented at £15,307 to be an increase of 59% from the
previous year £9,624
• The 2020 Statement of Accounts shows trading surplus of £106,943
• Credit Card spend is £6,872 which is a reduction from £8,083 from previous year.
• There is an increase in staff salaries as a result of a planned increase in headcount which
covers increased workload and outcomes delivered by the staff.
• Independent audit as documented as a recommendation in the last audit report could
not be completed due to impacts from covid 19 restriction. That recommendation The
recommendation is being reviewed in 2021.

Recommendations
• Armstrongs acting as the Institutes accountants provide a Draft Copy of the Report of
the Directors to the Audit Committee, as the first step (or if a draft is provided to the CEO
it is at the same time presented to the Audit Committee). This will allow for the audit
committee to discharge its duties proportionately in line with the ToR.
• Continued quarterly review of the management accounts to support the Security Institute
Board. This will also focus on the breakdown of types of income in the same way as the
accounts show expenditure.
• Move to a quarterly audit committee to allow for the board to discharge its duties in
spend control, this should be reviewed in accordance with regulations.
• An Independent security audit on matters related to operational security for the security
institute. Areas such as Cyber Essentials and GDPR should be considered in the scope.
• A review and understanding on how annual budget is allocated for Security Institute,
managed and internally audited.

(1) The Security Institute is entitled to exemption from audit under Section 477 of the Companies Act 2006 for year
ended 31 December 2020

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